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South India also churns out more films than Bollywood. Buoyed by an ardent fan following in the South, film is the third largest segment of the media and entertainment industry at Rs 2,680 crore.

Chennai: The media and entertainment (M&E) industry in South India is likely to touch Rs 43,600 crore by 2016-17 from Rs 23,900 crore in 2012-13, according to a report by consulting firm Deloitte Touche Tohmatsu India Pvt. Ltd and industry lobby Federation of Indian Chambers of Commerce and Industry (FICCI).

Growth will be driven mainly by the popularity of vernacular content in the region and endeavors by media vehicles to expand their presence, said the report, titled Media & Entertainment in South India—the Digital March.

The south Indian market is dominated by television (56%), followed by print (28%) and films (11%). Sectors such as new media and radio, though smaller than other mediums, are expected to grow at rates higher than the industry average, given their increasing power of engagement, said the report.

The television market is estimated at Rs 13,470 crore. The medium is expected to grow at a compounded annual growth rate (CAGR) of 20% over the next four years due to the benefits of digitization being realized.

At the national level, digitization is changing the way consumers view television, with broadcasters also seeing an opportunity in creating and showcasing digital content. While the industry is enabling multi-screen viewership of TV content for viewers who are constantly on the move, the medium is attracting increasing number of local advertisers.

“All media platforms viz. films, TV, print and radio are pushing content on the digital medium so as to enhance reach. Not only is the digital medium helping industry players reach wider audiences, it is also enabling them to establish a stronger connect with consumers,” said Kamal Haasan, chairman, FICCI Media and Entertainment Forum, South.

Print is the second largest segment accounting for 28% of the overall market in 2012-13 at Rs 6,680 crore. English-language publishers are launching vernacular dailies as advertising revenue from vernacular print in the region is estimated to grow at twice the pace of that of English, largely driven by local advertisers and increasing focus of national advertisers beyond the bigger cities.

The print industry is also trying to identify monetization opportunities online by developing mobile apps and mobile optimized websites. With publishers identifying innovative ways to reach out to their readers, the print industry is also expected to see a steady CAGR of 8% till 2016-17.

“The print industry in South India, where four states represent about 30% of the Indian market in terms of readership, has been able to maintain its vigor through tough times.” said Neeraj Jain, senior director, Deloitte. “The opportunity will lie in tapping the growth potential of the market through expansion and deeper penetration while simultaneously building additional capabilities to explore alternate sources of revenue.”

South India also churns out more films than Bollywood. Buoyed by an ardent fan following in the South, film is the third largest segment of the media and entertainment industry at Rs 2,680 crore.

The industry is adopting technology across the value chain—scouting talent through social media, adopting newer film making technologies in terms of sound and filming, distributing and exhibiting films digitally as well as embracing e-ticketing platforms. The industry is expected to see a healthy CAGR of 12% over the next four years, said the report.